JEDDAH, 6 August 2007 — If you and your family are adversely affected by the drastic rise of the Philippine peso against the US dollar, here’s your chance to be heard in Manila: A petition letter for a special exchange rate for OFWs.
The letter is addressed to President Gloria Macapagal Arroyo and it will be delivered to Malacañang as soon as a substantial number of signatures are gathered, initiators of the campaign said.
“The more signatures we get, the better so that our officials in Manila will listen,” said Ronnie Abeto, one of the leaders of the V-Team – Advocacy and Community Service group that is spearheading the campaign.
He said that as the government has readily offered to grant relief to Philippine exporters of goods, there’s no reason not to give a little help to OFWs.
The government has offered to put up a $1 billion stabilization fund through the Development Bank of the Philippines for exporters of goods who complained of losses.
The letter also stressed the same point.
“After all, we are exporters of labor that brings significant benefits to the economy and unlike exporter of goods; the government spends only very minimal cost on us, if at all. If government can shell out some funds to benefit exporter of goods, surely they can do the same for more than 8.5million OFW and nearly 25 million family members back home,” it said.
Abeto asked leaders of every OFW organization, regardless of persuasion or calling, to print a copy of the petition being passed around by e-mail and explain to members the purpose of the campaign so that they may affix their signatures .
“Ito na ang pagkakataon nating magkaisa para pakinggan ng mga nasa poder sa Maynila ang boses natin (Here’s a good chance for us to speak as one so that the powers-that-be in Manila will listen to us),” he told Arab News.
Joseph Espiritu, one of the senior leaders of V-Team, said those who have access to the Internet may add their signatures at http://www.petition.patnubay.com. The petition can also be downloaded from the same site.
The Prayer
As sought by the letter, a fixed 10 percent premium above the exchange rate prevailing in the market or a flat rate of 50 pesos to $1 be given to “legitimate” OFWs. Once the peso reaches P50 to $1, the premium or flat rate shall be automatically lifted.
The letter explained that the peso’s rise from 56 to 45 versus the US dollar has caused substantial decrease in OFWs’ peso-equivalent earnings, which can be translated much like to a 20% reduction on salaries. “This reduction certainly hurt our family’s budget and the over-all spending power of OFWs,” it said.
“The extent of this reduction on OFW spending power caused by decreased remittances is magnified even more by the consequent rising of prices of commodities which ironically should have decreased, if not stabilized due to the strengthening of the peso. Now, not only our families suffer from decreased budget but also from increased prices,” it said.
The letter noted claims by surveys about the increase in total OFW remittances yearly being due to more and better job offers and better salary packages as a result of increased demand for Filipino workers abroad is only partly true.
“A big chunk of that increase is mainly because we have chosen to cut our personal expenses abroad and employ belt-tightening measures in order to send more dollars so that our remittance can cope up with the lower exchange rate.”
“A lot of us now are becoming constrained to give up our jobs and get back to our country because of the declining peso-equivalent of our remittances. We are concerned that the prospect of massive flight of OFW back home isn’t sustainable in the long run considering our vast number against the small number of jobs generated yearly,” it said.
Returning home for good, however, does not appear to be an attractive option either, considering the increasing number of jobseekers fighting for low-paying jobs, said the petition.
“In short note, our life abroad and the life of our families back home gets harder with the continuing rise of the peso. Our families have to manage smaller budget against increased prices and we have to work longer hours and cut expenses to be able to remit more dollars. Our common goal for a shorter timeline of working away from loved ones has no doubt been lengthened. With the peso hovering around P44-P45 a dollar, it will now take us longer to achieve our plans of saving to build livelihood, if not impossible,” the letter lamented.
Where to Source Funds
Noting that the special rate may entail costs, the petition letter proposed the following as source of funds:
• The government to put up a stabilization fund similar to that conceived for the exporter of goods.
• The government to enter into a collective “Forward Contract or Currency Options” with financial institutions in order to shield future dollar remittances against sudden unfavorable peso appreciation while taking advantage of exchange rate movement that favors OFW.
The petition said OFWs would be willing to send representatives to a committee to draft the implementing guidelines or provide input.
“We fully understand that this proposition for special rate may entail costs to the government, which could be material. But it is our position that these costs surely pales in comparison to the benefits we have hauled to the government in the past and the benefits it will get from us in the future,” said the letter.
It said this is the chance of the government to return the favor by giving them “relief to stabilize our earnings.”
While crediting President Arroyo for her government’s recent economic achievements, such as the spectacular 6.9 percent growth rate during the first quarter of the year, the highest in 17 years, the letter noted that these achievements have not translated into better life for OFW families.
“Our families have enough to suffer from us being detached from them. From the fear of letting time and distance tear us apart. From the fear of us coming home one day defeated. Do not allow those suffering be compounded by fear of us losing what we have sacrificed for because our dollar earnings is being dwarfed by an unjustifiably fast-paced and unrestrained peso appreciation,” the letter said.
